On May 22, 2004, at 0800 mountain daylight time, a Lindstrand 180A hot air balloon, N60181, operated by the Bighorn Balloon Company, LLC, encountered gusting wind conditions during landing near Ridgeway, Colorado. The balloon was dragged and subsequently struck vehicles and a house before coming to rest at the bottom of a hill. One of the six passengers on board sustained a serious back injury. Two passengers sustained minor injuries. The commercial pilot and three other passengers on board the balloon were not injured. The sight-seeing flight was operating under the provisions of Title 14 CFR Part 91. Visual meteorological conditions prevailed at the time of the accident. The local flight departed at 0700. In his written statement, the pilot reported that while landing the wind changed directions taking his balloon up a slight draw between houses. The pilot said he elected to land on a hillside and wait for his crew. The pilot said they had been there for about a minute when a sudden gust of wind came up the draw and pushed the balloon in the air. The pilot said the balloon headed east toward a house at a rapid rate. He said the basket struck a boat, a ladder rack on a truck, and the edge of the roof of the house. The balloon then returned to the ground and was drug up a hill to its crest. At the crest of the hill the balloon again became airborne. The balloon again came down, this time on a road. The balloon then bounced down the hillside before dragging the basket on its side for a short distance. The pilot said the balloon then came to rest and deflated. In an interview statement, the pilot said that when the balloon crested the hill, it then "caught a rotor on the backside" and dropped into a bowl. The pilot said he ripped out the top. The balloon struck the ground at the bottom of the hill and stopped. The pilot said the seriously injured passenger, on getting down in the basket, sat down hard. The pilot said the bottom of the basket sustained minor damage. The balloon envelope experienced some ripped panels. A local Marshall said that the balloon was part of festival that was going on at Ridgeway. He said the balloon was one of 12 balloons that took off about 0700. He said the balloons drifted north over the town at approximately 300 feet above the ground. The Marshall said the winds were calm when the balloons took off. He said the winds picked up significantly as the hour passed. At 0752, the reported wind conditions at Montrose, Colorado, 25 miles north of the accident site were 210 degrees at 17 knots gusting to 20 knots.